What is a WIC?

As an employer, you may already be aware of the term 'WIC'. But what does it really mean and as a Queensland employer, what importance does it have to you? 

Every accident insurance policy with us is given a WorkCover Industry Classification (WIC).

WorkCover's Industry Classifications are based on a national classification scheme published by the Australian Bureau of Statistics called the Australian and New Zealand Standard Industrial Classification (ANZSIC). 

The Australian Bureau of Statistics uses sub-groups to define business units that carry out similar productive activities. We use the ANZSIC groupings as a base for our own WICs. These are outlined in the Queensland Government Gazette.

Each accident insurance policy generally has one WIC allocated to it having regard to the employer's primary or predominant business activity. 

For example, a company whose primary activity involves erecting plasterboard and plastering, the WIC Plastering and Ceiling Services, 324101, would be assigned and all claims would be coded to this WIC.

For labour hire companies however, things are slightly different. 

There are 20 WICs assigned to labour hire policies. As a labour hire agency can supply workers to a number of different businesses and industries, the policy is required to have each of the Labour Hire WICs allocated to the policy. This means the appropriate level of risk is covered depending on industry.

Each WIC for labour hire is treated the same as a non-labour hire WIC in that they have a different Industry Rate (otherwise known as Gazette Rate).

Out of the 20 classifications listed, there are 19 WICs based on the ANZSIC categories and one WIC, 721236 - Contract Staff Services (Own Administration Staff), which is for internal staff employed by the labour hire agency such as recruiters and administration staff etc. 

Does this affect my premium?

With so many WICs on your policy, it is important to make sure claims are coded to the correct WIC as each classification carries a performance based rating, known as your premium rate, which is used in the calculation of your overall premium.

Each WIC has a corresponding premium rate, which is calculated using the claims cost performance of all businesses classified in that industry. A WIC's rate is not necessarily linked to the perceived risk involved for workers in that industry—it is linked to actual claims experience.

If a lot of claims are made, the premium rate for that particular WIC will increase so it is important that claims are coded to the right WIC. 

As Labour Hire WICs have different gazetted rates, if a claim is coded incorrectly it can have an adverse effect on your overall premium.

For example, for a brand new policy, if an injured worker is coded against the Construction WIC (E30000), which has a PR14/15 Gazetted Rate of 3.527 per $100 worth of wages, rather than being coded against the correct Retail Trade WIC (G39000), with a Gazetted Rate of 1.644, all the claims costs are incorrectly going against a WIC with a higher rate. This has the potential to increase your overall premium. 

Industry not occupation

For a labour hire policy, wages are allocated to WICs based on the WIC of each client business to which you as the employer supplies workers, and not what the worker does.

For example – a chef, who works for a mining company, would need to have their wages placed against the Mining WIC.

As an employer you need to remember this simple tip that it is "industry not occupation".

If you are not sure what WIC the host employer would fall under, you can use our Verification of Cover tool located on our website or you can discuss with your relationship manager.

Last updated
22 March 2017